CTP.L Regulatory News (CTP)

Castleton Technology plc

("Castleton", the "Group" or "the Company")

Contract wins worth £5.6 million

Castleton (AIM:CTP), the leading provider of technology products and services to the social housing sector, is pleased to announce that it has been awarded a total of £5.6 million in new and extended contracts.

The Company's Software Solutions division has been awarded a significant contract for the provision of the Castleton Repairs Solution worth £1.6 million over the next four years, with an option to extend for a further four years. The contract is being delivered by three contractors, who will now all use the Castleton software solution.

Further new contracts have been signed by the Software Solutions division for the provision of the Company's Opus Service Charge Solutions. These contracts are with Orbit Housing Group, The Regenda Group, Richmond Housing Partnership and Forviva Group and are worth a total of £350,000 over three years.

In addition, the Managed Services division has also further extended its contract base with a number of significant three to five year agreements, significantly progressing the Company's stated strategy of growing recurring revenue and moving away from one-off transactions. These include the largest fully managed hosted desktop and infrastructure contract to date, which has been awarded by a longstanding Group customer within the housing sector. The agreement has a total contract value of £2.5 million and has the option to extend. Additional hosted and managed services contracts with a combined total value of £1.1 million have also been added as a result of upselling and cross selling activities, supporting strong growth within the more traditional on premise solutions and support services portfolios.

The Castleton management team remains focused on realising the significant cross selling opportunities presented by the expansion of the Company's product portfolio and its customer base.

Ian Smith, CEO of Castleton, commented: 

"Following a very busy period of acquisitions which have created a unique set of complementary services in our chosen sector, I am really pleased to see sales momentum coming through. These contracts show how exceptionally well placed we now are to win bigger contracts. That, combined with our expanded customer base showing an increasing interest in the full range of our services, means I remain very confident in Castleton's potential to deliver for shareholders".